{"id":21731,"date":"2016-09-17T16:01:27","date_gmt":"2016-09-17T21:01:27","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21731"},"modified":"2016-09-17T16:01:27","modified_gmt":"2016-09-17T21:01:27","slug":"88-probability-we-just-entered-recession-the-broken-monetary-mechanism-that-got-us-here","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21731","title":{"rendered":"88% Probability We Just Entered Recession &#038; The Broken Monetary Mechanism That Got Us Here"},"content":{"rendered":"<header class=\"entry-header\">\n<h3 class=\"entry-title\"><a href=\"http:\/\/www.firstrebuttal.com\/88-probability-we-just-entered-recession-the-broken-monetary-mechanism-that-got-us-here\/\">88% Probability We Just Entered Recession &amp; The Broken Monetary Mechanism That Got Us Here<\/a><\/h3>\n<div class=\"entry-meta\">My last piece \u201cThe Matrix Exposed\u201d generated a bit of\u00a0a stir. \u00a0And as per usual the PhD\u2019s\u00a0had\u00a0some fairly colourful things to say to me\u00a0regarding\u00a0the notion that more money and more credit may actually stall an economy. \u00a0But look I\u2019m not trying to be offensive to anyone. \u00a0I\u2019m simply making a case that when consumer credit becomes the basis of growth, well you have a real problem. \u00a0And that is a pretty reasonable argument even without the hoards\u00a0of data backing it up.<\/div>\n<\/header>\n<div class=\"entry-content\">\n<p>But so allow me an\u00a0attempt to mend some bridges. \u00a0Let\u2019s start by looking at the various existing frameworks that drive economic policy. \u00a0We have Monetary policy (the banks), Fiscal policy (Congress), Microeconomic policy (Corporations). \u00a0So let\u2019s look at each.<\/p>\n<p>Let\u2019s begin with\u00a0Fiscal policy. \u00a0The very first issue that should jump out to everyone is that Congress has been utterly ineffective for almost 2 decades now. \u00a0That is because the partisanship has become so intense that there simply seems no room for compromise in an effort to get any reasonable piece of legislation done. \u00a0What we are left with is a slew of outdated fiscal policies. \u00a0Perhaps most detrimental\u00a0is a corporate tax rate nearly twice that of many other developed nations.<\/p>\n<p>The problem with relatively (to other nations)\u00a0high corporate tax rates is it means that any domestic investment, everything else equal, has a significantly longer breakeven point. \u00a0Said another way, the return on domestic investment is much lower than the return on foreign capital investment (ceteris paribus). \u00a0This is a very intuitive concept, easily digestible by all. \u00a0The implication is that the relative level of corporate tax rates here in the US incentivize corporations to invest elsewhere.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>88% Probability We Just Entered Recession &amp; The Broken Monetary Mechanism That Got Us Here My last piece \u201cThe Matrix Exposed\u201d generated a bit of\u00a0a stir. \u00a0And as per usual the PhD\u2019s\u00a0had\u00a0some fairly colourful things to say to me\u00a0regarding\u00a0the notion that more money and more credit may actually stall an economy. \u00a0But look I\u2019m not [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[63,6454,14323,14324,534,1264,1796],"class_list":["post-21731","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banks","tag-first-rebuttal","tag-fiscal-policy","tag-microeconomic-policy","tag-monetary-policy","tag-recession","tag-us-congress"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21731"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21731\/revisions"}],"predecessor-version":[{"id":21732,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21731\/revisions\/21732"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}